Ala. Admin. Code r. 305-9-1-.07
Current through Register Vol. 43, No. 1, October 31, 2024
Section 305-9-1-.07 - Compliance, Certification, And Utilization Responsibilities For Surplus PropertyWhen an eligible entity receives federal or state surplus property, the entity must certify to the Surplus Property Division that the property will be used in accordance with the following certifications and agreements as stated in CFR 41 CR 101 and listed on the reverse of the invoice.
Author: Shane T. Bailey
Ala. Admin. Code r. 305-9-1-.07
New Rule: Filed November 25, 2002; effective December 30, 2002. (a) The entity is a public agency; or a nonprofit educational or public health institution or organization, exempt from taxation under Section 501 of the Internal Revenue Code 1954; or a nonprofit institution or organization that receives appropriated funds for programs for older individuals under the Older American Act of 1965, as amended, or Title IV or Title XX of the Social Security Act, or under the Economic Opportunity Act of 1964 and is exempt from taxation under Section 501 of the Internal Revenue Code of 1954; within the meaning of Section 203(j) of the Federal Property and Administrative Services Act of 1949, as amended, and the regulations of the General Services Administration. (b) If the entity is a public agency, the property is needed and will be used by the recipient for carrying out or promoting for the residents of a given political area one or more public purposes, or if a nonprofit educational or health institution or organization, the property is needed for and will be used by the recipient for educational or public health purposes, including research for any such purposes, or if a nonprofit institution or organization that receives appropriated funds for programs for older individuals under the Older Americans Act of 1965, as amended, the property is needed for and will be used by the recipient for programs for older individuals. (c) The entity has funds available to pay all costs and charges incident to donation, and these charges will be paid promptly. (d) The receipt of federal surplus property shall be subject to the nondiscrimination governing the donation of surplus personal property issued under Title VI of the Civil Rights Act of 1964 and Title VI Section 606 of the Federal Property and Administrative Services Act of 1949, as amended, and Section 504 of the Rehabilitation Act of 1973, as amended, and Section 303 of the Age Discrimination Act of 1975. (2) When an eligible entity receives federal surplus property, the eligible entity must certify that the following federal conditions will be adhered to. (a) All items of property shall be placed in use for the purposes for which acquired within one year of receipt and shall be continued in use for such purposes for one year from the date the property was placed in use. In the event the property is not placed in use, the entity shall immediately notify the Surplus Property Division, and at the entity's expense, return such property to the Surplus Property Division, or otherwise make the property available for transfer or other disposal by the Surplus Property Division, provided the property is still usable as determined by the Surplus Property Division. (b) Such special handling or use limitations as are imposed by General Services Administration (GSA) on any item(s) of property listed hereon. (c) In the event the property is not so used or handled as required by (2)(a) and (b), title and right to possession of such property shall at the option of GSA revert to the United States of America and upon demand the entity shall release such property to such person as GSA or its designee shall direct. (3) If the federal surplus property items have a unit acquisition cost of $5,000.00 pr more, or if the federal surplus property items are passenger motor vehicles (except vessels which are 50 feet or more in length, and aircraft) regardless of their acquisition cost, then the eligible entity must certify that the following Surplus Property Division terms and conditions will be adhered to. (a) The property shall be used only for the purpose(s) for which acquired and for no other purpose(s). (b) There shall be a period of restriction which will expire after such property has been used for the purpose(s) for which acquired for a period of 18 months from the date the property is placed in use. (c) In the event the property is not so used as required by (3)(a) and (b) and federal restrictions (2)(a) and (b) have expired then title and right to the possession of such property shall at the option of the Surplus Property Division revert to the Surplus Property Division and the donee shall release such property to such person as the Surplus Property Division shall direct. (4) When an eligible entity receives federal surplus property, the eligible entity must certify that the following federal terms, reservations, and restrictions will be adhered to. (a) From the date it receives the property and through the period(s) of time the conditions imposed by (2) and (3) above remain in effect, the entity shall not sell, trade, lease, lend, bail, cannibalize, encumber, or otherwise dispose of such property, or remove it permanently for use outside the State without the prior approval of GSA under (2) or the Surplus Property Division under (3). The proceeds from any sale, trade, lease, loan, bailment, encumbrance or other disposal of the property, when such action is authorized by GSA or by the Surplus Property Division shall be remitted promptly by the entity to GSA or the Surplus Property Division as the case may be. (b) In the event any of the property listed hereon is sold, traded, leased, loaned, bailed, cannibalized, encumbered, or otherwise disposed of by the entity from the date it receives the property through the period(s) of time the conditions imposed by (2) and (3) remain in effect, without prior approval of GSA or the Surplus Property Division, the entity, at the option of GSA or the Surplus Property Division, as the case may be, the proceeds of the disposal or the fair market value, or the fair retail value of the property at the time of such disposal, as determined by GSA or the Surplus Property Division. (c) If any item, from the date it receives the property through the period(s) of time the condition imposed by (2) and (3) remain in effect, any of the property listed hereon is no longer suitable, usable, or further needed by the entity for the purpose(s) for which acquired, the entity shall promptly notify the Surplus Property Division, and shall, as directed by the Surplus Property Division, return the property to the Surplus Property Division, release the property to another entity, or sell or otherwise dispose of the property. The proceeds from any sale shall be remitted promptly by the entity to the Surplus Property Division. (d) The entity shall make reports to the Surplus Property Division on the use, condition, and location of the property listed hereon, and on other pertinent matters as may be required from time to time by the Surplus Property Division. (e) At the option of the Surplus Property Division, the entity may abrogate the conditions set forth in (3) and the terms, reservations and restrictions pertinent thereto in (4) by payment of an amount as determined by the Surplus Property Division. (5) The eligible entity must certify that the following conditions, applicable to all items of federal surplus property, will be adhered to. (a) The property acquired by the entity is on an "as is," "where is" basis, without warranty of any kind. (b) Where an entity carries insurance against damages to or loss of property due to fire or other hazards and where loss of or damage to donated property with unexpired terms, conditions, reservations or restrictions occurs, the Surplus Property Division will be entitled to reimbursement from the entity out of the insurance proceeds of an amount equal to the unamortized portion of the fair value of the damaged or destroyed donated items. (6) The donation of federal surplus property consisting of vessels which are 50 feet or more in length, aircraft, having an acquisition cost of $5,000.00 or more and regardless of the purpose for which they were acquired, shall be subject to the terms, conditions, reservations, and restrictions set forth in the "Conditional Transfer Document" executed by the authorized representative of the entity purchasing the property. (7) If the federal surplus property items have a unit acquisition cost of less than $5,000.00, then the eligible entity must certify that the following Surplus Property Division terms and conditions will be adhered to. (a) The property shall be used only for the purpose(s) for which acquired and for no other purpose(s). (b) There shall be a period of restriction which will expire after such property has been used for the purpose(s) for which acquired for a period of 12 months from the date the property is placed in use except for special items with extensive use potential on which the Surplus Property Division designates an additional 6 months' period of restriction and so indicates on the Distribution Document. (c) In the event the property is not so used as required by (7)(a) and (b) and the Federal restrictions (2)(a) and (b) have expired, then title and right to the property shall at the option of the Surplus Property Division revert to the Surplus Property Division and the entity shall release such property to such persons as the Surplus Property Division shall direct. [See the Forms Section for this form, entitled "Restrictions (Federal Surplus)," for (1) through (7) of this rule.] (8) When an eligible entity, other than agencies of the state, receives state surplus personal property through the Surplus Property Division, the entity must certify that it agrees to utilize the property for a period of 12 months before disposing of that property. In the event such utilization cannot be continued within this 12-month period, the entity agrees to return to the property to the Division at the entity's expense. This returned property will be listed on a "Non-consumable Personal Property Receiving/Transfer/Invoice" form. (See the Forms section for this form.) (9) Enforcement of compliance, certification, and utilization responsibilities. The Surplus Property Division shall make a review and utilization report of all items issued to eligible entities with a unit acquisition cost of $5,000.00 or more, including any passenger motor vehicles regardless of their cost, to ensure that the terms and conditions contained in this rule are being met. Eligible entities are deemed to understand that all property acquired through the Surplus Property program is for the purpose of filling a specific need in the entity's program, and for no other purpose. Author: Statutory Authority: Code of Alabama 1975, 41-16-120 through 41-16-125. Public Laws 100-612, 100-656, and Chapter 288 at 63 stat. 377 dated June 30, 1949, as amended; 40 U.S.C. 471 through 760, 41 U.S.C. 251 through 260; 44 U.S.C. 2101 through 2110. Emergency Adoption: Filed ___________________; effective ______________. Permanent Adoption: Filed ______________________; effective ___________________.Statutory Authority:Code of Ala. 1975, § 41-23-6.